The Dow Jones Industrial Average and other main indexes climbed in afternoon trading on Monday. As of the close on Friday, the S&P 500, along with the Nasdaq composite, posted weekly declines for the seventh consecutive week. This marks the S&P 500's longest losing streak since 2001.
Meanwhile, the Dow Jones closed lower for its eighth consecutive week. The S&P 500 nearly triggered a traditional bear market after flirting with levels that would have closed it at least 20% below its January peak.
Nasdaq Trails Dow Industrials
The Dow Jones industrials traded up 1.8% and led the upside as financial stocks outperformed. The S&P 500 was up 1.4%. Meanwhile, the small-cap Russell 2000 was up 0.6%, lagging the indexes. The Nasdaq held a 1.1% gain. According to IBD data, volume was running lower on the Nasdaq and on the NYSE vs. the same time on Friday.
Among the 11 S&P 500 sectors, the Financial Select Sector SPDR ETF led the upside, gaining 3.5%. JPMorgan Chase, Bank of America and Citigroup all gained more than 6%. The 10-year Treasury bond yield ticked up to 2.82% after closing Friday at 2.78%, its lowest closing level since April 26.
Dow Jones leader JPMorgan overcame resistance at the 21-day exponential moving average, a positive sign. But the stock still remains below its 50-day and 200-day lines and is not currently setting up in a base.
Energy stocks also outperformed, with the Energy Select Sector SPDR ETF rising over 2%. Additionally, out of IBD 197 industry groups, several oil and gas-related groups led with gains of 3% or higher. However, the coal energy group led the upside with gains of 7% in afternoon trading.
Top gainers in the coal group include Alpha Metallurgical, Peabody Energy and Arch Resources, which rose 12%, 12% and 6%, respectively. The group is currently the number one ranking industry group.
Outside Dow Jones: Shipping Stocks Power Higher
The Innovator IBD 50 ETF, a benchmark for growth stocks, rose 1.7%.
Shipping stocks made notable gains on Monday. IBD 50 leader ZIM Integrated Shipping, Eagle Bulk Shipping and Genco Shipping & Trading all rose more than 5%. The shipping transportation industry group is holding onto its No. 11 rank, out of the 197 groups IBD measures.
ZIM shipping has recently reclaimed its 50-day line. Shares rose more than 7% on Monday and are attempting to climb the right side of a 39%-deep cup base, which shows a buy point at 79.05. The stock could also be building a handle.
Genco Stock Analysis
Elsewhere, Eagle Bulk Shipping held support at its 50-day line as it reached for a new high. The stock is currently above its 20% profit zone from a recent cup-base breakout.
Genco showed improved strength as shares flew out of the 5% buy zone and are now well extended from a 21.99 handle buy point. The stock initially became extended but failed to reach the 20% profit zone and instead triggered the 7%-loss-cutting sell rule after intense selling pressure.
But the stock's sharp move higher on Monday in heavy volume is a positive sign that the breakout may hold this time.
Follow Rachel Fox on Twitter at @IBD_RFox for more Dow Jones and stock market commentary.
